OUTSOURCING OR SELLING COUNTY DEBT

Board of County Commissioners · 2026-07-21 · report

This legislative report, File Number 261102, addresses the feasibility of outsourcing or selling Miami-Dade County debt. The report, introduced on 6/15/2026 and pending BCC assignment with an agenda date of 7/21/2026, analyzes the potential sale of outstanding County debt. As of July 29, 2025, the County had approximately $525 million in outstanding debt. The Internal Compliance Department's Credit and Collection Section (CCS) identified about $41 million (8%) of this debt as potentially suitable for sale to third-party collection agencies or receivables buyers. The remaining 92% is not recommended for sale due to compliance requirements, data privacy concerns (HIPAA), and the need for personalized constituent assistance. The report notes that the County has prior experience with outside collection agencies, listing several firms from a 2003 Request for Approval. Legal analysis indicates Florida law permits the assignment of code enforcement liens, but recommends the County retain control. Potential risks include exposure to the Fair Debt Collection Practices Act (FDCPA) and Florida Consumer Collection Practices Act (FCCPA) if debt is sold to private collectors, and potential impact on funding streams for departments and the Clerk of the Court. The sale could provide short-term cash flow but would sever access to data and internal flexibility. The report recommends considering the sale of a portion of the outstanding debt portfolio to generate cash flow, with balances limited based on specific criteria to minimize risk.